Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous, except when buyer related activities (such as sales, advertising, after sale service, and technical assistance) need to take place close to buyers buyers' demand for short delivery times and or high transportation costs make it uneconomical to operate from one or just a few locations it helps hedge against the risks of exchange rate fluctuations, supply disruptions, and adverse political developments there are diseconomies of scale in trying to operate from a single location there are reasons to decouple buyer related activities in favor of locational advantages

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Question: Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous, except when buyer-related activities

Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous,exceptwhen

buyer-related activities (such as sales, advertising, after-sale service, and technical assistance) need to take place close to buyers.
buyers' demand for short delivery times and/or high transportation costs make it uneconomical to operate from one or just a few locations.
it helps hedge against the risks of exchange rate fluctuations, supply disruptions, and adverse political developments.
there are diseconomies of scale in trying to operate from a single location.
there are reasons to decouple buyer-related activities in favor of locational advantages.

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